Arsenal announce profits boost

Arsenal have announced an increase in profits of £10.2million before player trading in their interim results for the six-month period ending on November 30 last year.

Arsenal Holdings plc revealed that the club made a £2.2m profit after taxation, compared to a £4.9m loss in 2003.

The group operating profits increase - before transfers - of £10.2m compared to one of £2.9m in 2003.

The Gunners are preparing for a move from Highbury to Ashburton Grove, and a £90m stadium naming and shirt sponsorship deal with Emirates was concluded during the period.

The club say Emirates Stadium construction work is on schedule, with in excess of £54m spent in the period financed mainly by the draw-down of £44.9m of fixed rate bank loan and planned allocations of Nike sponsorship funds.

Arsenal non-executive chairman Peter Hill-Wood said: "The group has continued to make good progress over the six months to 30 November 2004.

"We have concluded a major sponsorship deal with Emirates, and the construction work on the Emirates Stadium itself remains on target for a summer 2006 opening.

"The results for period are sound and show the group to be in a very satisfactory financial position at this interim reporting stage."

The Gunners have an increased turnover for the period of £48.4m compared to £45.5m in 2003.

A new long-term sponsorship deal with Nike is the main reason for a growth in commercial revenues to £8.8m from £6.3m in 2003.

The club's new home and away kits have driven income from retail operations up to £5.2m from £3.9m in 2003.

Gate and match revenues of £14.3m compared favourably to £12.4m in 2003.

On the Emirates Stadium construction project, the club reports that the main structure of three stands are substantially developed with upper-tier terracing already in place and the main roof trusses to the northern half of the stadium completed.

Work on the south stand, which completes the new stadium's bowl, has reached lower concourse level.